Brazil

Currency Brazilian Real
Payroll Frequency Salaries are usually paid on the 5th of the following month.
Capital Brasilia
Date Format dd/mm/yyyy
VAT 17% standard rate

Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Brazil. TopSource provides Employer of Record services to global companies establishing a presence in Brazil that do not wish to be burdened with the complications of Brazil employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Brazil, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.

Services we offer

Payroll Processing
• Payroll bureau solutions for your Brasilien entity
EOR
• Employment solutions/leasing • Providing documents associated with employment
• Employee on-boarding process and documentation • Monthly salary calculation
• Salary disbursement to employee’s account • Pay slip generation (If applicable)
• Employee statutory benefits administration and deduction
Supplementary services
• Foreign exchange and money transfer services for payment of employees and 3rd parties

Company formation in Brazil
We can help with company registration, company incorporation along with all the necessary documentation in Brazil. We can also assist foreign companies to smoothly setup a company anywhere in Brazil.

Statutory Compliances
We offer high-quality corporate statutory compliance services in Brazil. Our services meet highest standards and meet all your compliance requirements.

  • Minimum Wage

    Minimum Wage Since February 2020 The National Minimum wage is 1,045 Brazilian Real.

  • Taxes
    Employer Payroll Tax
    20.00% – Social Security (INSS) 7.93% – Social Security on 13th and Vacation
    8.00% – Time and Service Guarantee Fund u00a0(FGTS) 4.0% – Fine Provision for Termination
    3.3% – NCRA / SEST / SEBRAE / SENAT 2.5% – Education salary
    3.0% – Occupational accident insurance (SAT) 8.33% 13th – salary
    11.11% – Holidays
    68.17% – Total Employment Cost
    Employee Payroll Taxes
    8% – 11% – Social Security (Contributions for Private Sector Until February 29, 2020)
    7.5% – 14% – Contributions for Private Sector beginning March 2020
    Employee Income Tax
    0.00% Up to 1,903.98 7.50% 1,903.98 – 2,826.65
    15.00% 2,826.65 – 3,751.05 22.50% 3,751.06 – 4,664.68
    27.50% Over 4,664.68
About Employment in Brazil

Working Hours

Usually a workday is 8 hours, working hours shouldn’t be more than 220 per month or 44 per week.

Overtime

When overtime is worked within a standard work week, employers are expected to compensate their employees with an extra 50%. When overtime is worked during holidays the employer is expected to compensate their employees with an additional 100%.

Maternity Leave

A pregnant employee is entitled to 120 days of paid maternity leave. This payment is made by the employer and reimbursed by the National Social Security. An employer can grant an additional 60 days of paid maternity leave and recover that payment from tax benefits granted by the federal government.

Paternity Leave/Parental Leave

Fathers are permitted to take up to 20 days of paternity leave if agreed in the collective bargaining agreement, the minimum they are entitled to is 5 days.
Parental Leave- No specific laws.

Pension Fund

FGTS (Fund of Guarantee for The Time in Service). The official retirement age of women is 62 years old and men is 65 years old. Men and women both need at least 15 years’ worth of contributions to the National Social Insurance Institute (INSS) to be able to retire and receive a pension.

13th Salary

After 12 months of continuous employment the employee is entitled to a 13th month salary. This payment is 1/12th of their salary. It can be paid in one instalment before November 30th or in two instalments (one between February 1 and November 30 and the other until December 20).

Unemployment Insurance

Employers contribute 8% to the Severance Fund (FGTS). This fund is used by the individual for unemployment, retirement and other incidents.

Notice Period/Termination Process

You cannot have a notice period exceeding 90 days, the standard being 30 days plus three days for every year of employment.
Termination requires a notice period, and a pre-notice period in some instances.

Social Security

The rates of social security contribution are calculated in relation to income earnt. The employee and employer are required to contribute, the amount goes to the National Institute of Social Security (INSS). These contributions are kept in the event of retirement, pension due to death, illness, disability, and unemployment.
Employer – 20% for INSS (additional 6.8%-8.8% for other social security taxes). No cap for employer contributions
Employee –
• 8% – R$1,751.81
• 9% – R$1,751.82 – R$2,919.72
• 11% – R$2.919.73 – R$5,839.45
*employees with an income over R$5,839.45 are still taxed at this rate.
Total Contributions for Private Sector beginning March 2020:
Employer – 20% for INSS (additional 6.8%-8.8% for other social security taxes). No cap for employer contributions
Employee –
• 5% – R$1,039.00 (minimum wage rate)
• 9% – R$1,039.01 – R$2,089.60
• 12% – R$2,089.61 – R$3,134.40
• 14% – R$3,134.41 – R$6,101.06 ceiling

Severance Pay

Employers contribute 8% to the Severance Fund (FGTS).
For resignation or mutual agreement, employees are entitled to:
• Christmas bonus – 1/12 compensation per month of work during the calendar year.
• Payment for vacations not taken plus 1/3 bonus
• 30% of the FGTS penalty. 20% due to employee and 10% to the government.
For termination without cause:
You are expected to pay all of the above, including 50% of the FGTS penalty; 40% to the employee and 10% to the government.
To learn more, contact us now.

Contact Sales

0203 6915303
contactus@topsource.co.uk

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